Prudent monetary policy takes firm stance on deleveraging, speculation

Short-term pains will likely be traded for long-term economic health

China has been resolute in containing leverage and financial risks, as it endeavors to trade short-term deleveraging pains for the long-term health of the economy.

The People's Bank of China increased cash injections early in June to shore up liquidity, fueling speculation that the authorities were flinching from their ongoing deleveraging campaign.